RPM International Inc (RPM)
Cash ratio
May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cash and cash equivalents | US$ in thousands | 302,137 | 241,895 | 268,683 | 231,555 | 237,379 | 248,905 | 262,746 | 240,586 | 215,787 | 193,870 | 232,118 | 197,574 | 201,672 | 193,191 | 192,851 | 213,212 | 246,704 | 249,214 | 272,945 | 251,765 |
Short-term investments | US$ in thousands | — | — | — | — | 6,500 | — | — | — | 5,100 | — | — | — | 6,000 | — | — | — | 3,900 | — | — | — |
Total current liabilities | US$ in thousands | 1,467,450 | 1,243,460 | 1,293,890 | 1,282,580 | 1,466,060 | 1,201,950 | 1,254,360 | 1,268,650 | 1,490,800 | 1,119,510 | 1,290,030 | 1,649,250 | 2,016,410 | 1,934,900 | 1,483,590 | 1,163,620 | 1,331,410 | 1,087,500 | 1,132,690 | 1,092,780 |
Cash ratio | 0.21 | 0.19 | 0.21 | 0.18 | 0.17 | 0.21 | 0.21 | 0.19 | 0.15 | 0.17 | 0.18 | 0.12 | 0.10 | 0.10 | 0.13 | 0.18 | 0.19 | 0.23 | 0.24 | 0.23 |
May 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($302,137K
+ $—K)
÷ $1,467,450K
= 0.21
The analyzed data of RPM International Inc's cash ratio, spanning from August 2020 through May 2025, reveals relatively stable but modest levels of liquidity in terms of cash and cash equivalents relative to current liabilities.
Throughout the observed period, the cash ratio fluctuated within a narrow band, predominantly between 0.10 and 0.24, indicating that at most points, the company maintained cash holdings sufficient to cover approximately 10% to 24% of its current liabilities. The earliest recorded ratio in August 2020 was 0.23, which remained relatively steady through November 2020 and February 2021, with minor fluctuations.
A declining trend is observed starting in May 2021, when the ratio dropped to 0.19, followed by further decline to 0.18 in August 2021, and a more pronounced decrease to 0.13 in November 2021. The ratio continued to decrease into early 2022, reaching a low of 0.10 in February and May 2022, suggesting a contraction in immediate liquidity.
From mid-2022 onward, there is a modest recovery, with the ratio rising back to 0.12 in August 2022, then increasing to approximately 0.18 in November 2022, and further to 0.17 in February 2023. The ratio appears to stabilize around or slightly above 0.15 in the subsequent periods, reaching as high as 0.21 in November 2023 and February 2024.
Overall, the cash ratio's trend indicates that RPM International Inc has maintained a conservative stance on liquidity, consistently positioning its cash holdings to cover roughly 10% to 21% of its current obligations. The fluctuations suggest the company adjusts its cash holdings in response to operational needs, market conditions, or strategic cash management practices. The observed stability with occasional increases points to a balanced approach to liquidity management, without engaging in excessive cash accumulation or deferral of liquidity requirements over the analyzed period.
Peer comparison
May 31, 2025